Acting on 1994 complaint, FCC denied complaint filed by Graphnet against AT&T alleging latter unlawfully routed telex traffic and instead granted counterclaim by AT&T that part of Graphnet’s tariff was “unjust and unreasonable.” Telex service involves sending messages from one teleprinter to another. Dispute involved terms under which Graphnet made its facilities available to terminate domestic and international telex calls that traveled over AT&T’s network and were destined for Graphnet’s subscribers. FCC order released Tues. said AT&T considered Graphnet’s termination charges too high so it routed its traffic through foreign affiliates such as Unitel in Canada. Unitel then would send AT&T’s traffic on to Graphnet, paying less than AT&T because it had negotiated lower interconnection rates. FCC said that meant traffic AT&T received at N.J. switching center would be routed to Canada, where Unitel would send it back to Graphnet in U.S. Graphnet said such routing practices were illegal and “unnatural” but FCC agreed with AT&T that Graphnet didn’t prove those routing practices violated law: “Graphnet does not cite any Commission rule or regulation prohibiting AT&T’s domestic routing practices.” On other hand, FCC concluded that Graphnet’s charges to AT&T were unlawful.
FCC is formally seeking comments on NAB petition for ruling DBS operators can’t require 2nd dish for local TV stations (CD Jan 7 p4). Comments (CS 00-96) are due Jan. 23, replies Feb. 4. Proceeding is under “permit but disclose” ex parte rules.
U.S. Supreme Court denied request that it review case involving reciprocal compensation for Internet-bound traffic (Global NAPs v. FCC). U.S. Appeals Court, D.C., in April upheld FCC decision to void tariff filed by Global NAPs that sought $1.7 million in compensation from Verizon for handling 15 days of Internet traffic. Verizon refused to pay, saying Global NAPs tariff was attempt to bypass normal interconnection agreement process overseen by state regulators and amounted to access charge for Internet traffic, which isn’t allowed. High court on Mon. also denied review of case -- Tacoma v. Qwest -- in which 9th U.S. Appeals Court, San Francisco, had struck down telecom ordinances of more than dozen Wash. cities. Ordinances had required telecom providers, among other things, to file detailed disclosure of matters such as corporate policies and financial qualifications, and provide city govts. with free or excess network capacity. In challenge brought by Qwest, appeals court ruled that such requirements violated Sec. 253 of Telecom Act.
FCC rescinded one controversial fine for broadcast indecency but imposed $14,000 indecency fine on another FM station in separate actions announced Tues. Second case appeared to reduce FCC’s recent emphasis on need for complainant to document alleged violations. Enforcement Bureau decision to rescind fine against KKMG(FM) Pueblo, Colo., owner Citadel Bcstg., prompted protest from FCC Comr. Copps, who said full Commission should act on case.
Consumer Reports released results of Feb. story on cellphone quality, with Consumers Union (CU) Pres. James Guest charging carriers hadn’t lived up to their promises to subscribers. He said in conference call with reporters that enough disparity lingered between cellphone and fixed line service that customers shouldn’t give up their wireline phones. “What we are asking for at Consumers Union is for accountability from the cellphone industry to make good on their promises,” he said. Among differences are current inability of wireless subscribers to be able to call 911 and have operator pinpoint their exact location, Guest said. He said CU also took exception to petition pending at FCC that would have Commission forbear from local number portability requirements for mobile carriers. Verizon Wireless has forbearance request pending for requirement that takes effect Nov. 24 in top 100 metro statistical areas. Verizon has said it doesn’t seek similar relief from separate requirement with same deadline that mobile carriers participate in thousands- block number pooling. Guest said: “We call on the FCC to follow through and make it possible for someone to keep their phone number.” Gene Kimmelman, co-dir. of CU’s Washington office, said that based on finding of Consumer Reports research, Washington office would renew its call for FCC to take action on wireless policy areas such as Enhanced 911 and local number portability.
Writers Guild of America (WGA), representing writers of virtually all national entertainment programming and much of national news Americans see, said media mergers have caused decline in quality and quantity of programming. WGA comments came in filing to FCC Jan. 4 -- deadline for comments on proceeding contemplating limits on cable ownership. “We all fear the day when network dominance overwhelms the few independent voices remaining,” WGA said, saying consolidation was eroding freedom of expression and creativity. Guild said independence has “virtually ceased to exist” in movies made for TV and miniseries and that they have largely been replaced by game shows, reality shows and sexually exploitive programming. WGA specifically criticized rules that allow program distributors to produce and control content. “When everything is squeezed through 1 or 2 or 3 narrow funnels, when profit and ratings and other corporate goals enter strongly into the mix, and the voice of the creators is forced to take a back seat, when the writer has to do it their way or be replaced, of course creativity suffers.”
FCC’s Public Safety National Coordination Committee (NCC) plans general membership meeting at Commission hq Feb. 1, 9:30 a.m.-12:30 p.m. NCC advises Commission on use of 24 MHz in 700 MHz band that has been allocated to public safety services. On Jan. 31, NCC interoperability subcommittee will meet 9-11:30 a.m., technology subcommittee 12:30-3 p.m. and implementation subcommittee 3-5:30 p.m. All meetings will be in FCC meeting room. Contact: Michael Wilhelm, designated federal officer of NCC, 202-418-0680.
FCC spectrum auctions make cameo appearance in current box office and critical hit A Beautiful Mind. Film biography of Nobel prize winner John Nash lists auctions among public and economic policies influenced by his seminal contributions to game theory.
Federal appeals court ruled CLECs had right to opt into incumbent’s tariff provisions when negotiating interconnection agreements. Ruling by 10th U.S. Appeals Court, Denver, reversed lower court and upheld Colo. PUC arbitration decision that allowed WorldCom and Sprint to opt into any provisions of Qwest’s tariffs in same manner as they could opt into any provisions of negotiated interconnection agreements between Qwest and other CLECs. Qwest appealed that decision and won in federal district court, but appeals panel rejected Qwest’s position that allowing CLECs to opt into tariffs would gut provisions of Secs. 251 and 252 that require negotiation of interconnection agreements and arbitration of impasses. Appeals panel said tariff opt-in of PUC’s order was consistent with competition and didn’t violate Telecom Act or FCC regulations.
Cable Technology Notes: CableLabs told FCC in filing that 3 set-top manufacturers had signed CableLabs POD-Host Interface License Agreement (PHILA): Pace Micro Technology PLC, Motorola Broadband Communications Sector, Scientific- Atlanta… Comcast and Cox signed marketing agreements to offer home security and communications systems developed by Security Broadband Corp. using cable modems and lines… Cox said it was deploying Cisco’s 12400 and 7600 Internet routers and Cisco’s catalyst 6500 switches on backbone of its new network to deliver voice and data… Cox also said it had begun moving Cox@Home Internet customers off Excite@Home’s network to company’s $150 million, self-managed network. Due to bankruptcy, Excite@Home will shut down at end of Feb… TechTV signed agreement with Sun TV to give viewers in China, Hong Kong and Macao access to TechTV for 3 years. Sun TV will provide localized, Mandarin-language versions of TechTV… Digital Island announced agreement to provide 2-way Web services to Sony Pictures Digital Entertainment for use on www.sonypictures.com and www.screenblast.com… nCUBE said it completed digital program insertion test with Adlink and that its product gave local and regional cable advertisers ability to target their digital subscribers… DoveBid will auction assets of Orange County NewsChannel in live Webcast auction at 1 p.m. EST Jan. 17. Cable channel is closing because of financial problems.